Mapletree Logistics Trust’s (MLT) manager has been granted an option to acquire 9 Changi South Street 2 in Singapore from RSH Holdings for $24.5 million. The proposed acquisition is subject to approval from JTC Corporation and exercise of the option to purchase by MLT. The property has remaining land tenure of more than 33 years, and adjacent to an existing MLT property at 15 Changi South Street 2.
The acquisition will be funded by debt, and MLT’s aggregate leverage ratio will be around 38.2%. The acquisition should be accretive to MLT’s distribution. The stabilised net property income yield is likely to be 6.2%. With its modest size, no change is likely in MLT’s top 10 tenants, of which the top five are CWT, Coles Group, Equinix, JD.com and Cainiao.